Market Update 081020 http://biz.yahoo.com/mu/update.html 4:20 pm : Stocks rallied Monday as investors welcomed positive developments in the credit markets and Fed Chairman Bernanke supporting the idea of a second fiscal stimulus package.
In the end, the S&P 500 rallied 4.8%, settling at session highs thanks to a late-session surge in buying interest. Strength was mostly broad-based, with all ten sectors posting a gain. Volume, however, was on the light side with only 1.23 billion shares exchanging hands on the NYSE, compared to the one-year average of 1.49 billion.
During testimony to the House Budget Committee, Fed Chairman Bernanke said he feels the government's recent efforts will help restore the financial system, but cautioned the stabilization of the financial system will not quickly eliminate economic challenges.
Given the likelihood of a weak economy for several quarters, Bernanke said it would be appropriate for Congress to consider a second fiscal stimulus. He feels that a fiscal package should be targeted to boost overall spending and economic activity, aimed at improving credit for consumers, home buyers, business and other buyers and limit long-term effects on the government's budget deficit.
Meanwhile, overseas governments took more actions to help alleviate the financial market turmoil. India cut its key lending rate for the first time since 2004, South Korea said it will guarantee some of the foreign debt held by its banks, and the Netherlands is injecting approximately $13 billion in ING (ING 12.93, +2.28).
Credit markets continue to show improvements. Short-term interbank lending in dollars, measured by Libor, declined across all terms. The difference between what banks pay each other for three-month loans and what the government pays, known as the TED Spread, declined 65 basis points to 2.96%. The TED Spread is well off its 4.34% high reached on October 10, but levels remain substantially above the historically average of roughly 0.4%.
In corporate news, utility company Exelon (EXC 54.58, +0.08) made an unsolicited proposal to acquire NRG Energy (NRG 25.00, +5.67) for $26.43 per share, or $6.2 billion, in stock. The offer represents a 37% premium to Friday's closing level. The utilities sector as a whole climbed 8.1%.
Eaton (ETN 45.05, +0.63), Halliburton (HAL 20.80, +2.54), and Hasbro (HAS 28.79, -1.33) topped estimates for their respective latest quarters. On the negative side, Novartis AG (NVS 52.16, +1.22) and Mattel (MAT 14.07, -0.38) reported earnings that fell short of expectations.
The better-than-expected results from Halliburton, and a 3.8% gain in oil prices, helped the energy sector spike 11.2%.
The financial sector (+2.8%) underperformed on a relative basis, with notable weakness in retail (-3.4%) and industrial (-2.1%) REITs.
In economic news, September leading indicators rose 0.3%, although August's decline of 0.5% was widened to 0.9%. Economists had forecast a drop of 0.1% in September. The leading indicators report is mostly a collection of previously announced economic indicators.DJ30 +413.21 NASDAQ +58.74 SP500 +44.85 NASDAQ Adv/Vol/Dec 2099/2.05 bln/696 NYSE Adv/Vol/Dec 2657/1.23 bln/492
3:30 pm : The S&P 500 trades near session highs, as every attempt to climb higher is met with modest resistance.
Earnings will be in focus ahead of the opening bell tomorrow. After the close today, 17 companies are confirmed to report their quarterly results, including American Express (AXP 23.89, +0.56) and Texas Instruments (TXN 17.77, +0.12). Tomorrow before the open, 56 companies are confirmed to report, including 3M (MMM 56.31, -0.18), Caterpillar (CAT 40.05, +0.73), DuPont (DD 35.13, +1.36), Pfizer (PFE 17.21, +0.30) and US Bancorp (USB 30.62, +0.07).DJ30 +263.15 NASDAQ +29.78 SP500 +29.73 NASDAQ Adv/Vol/Dec 1880/1.67 bln/876 NYSE Adv/Vol/Dec 2525/879 mln/613
3:00 pm : The major indices are stuck in a trading range near session highs.
Treasuries are enjoying some buying interest on the long end of the curve, while the short end is under pressure. The 10-year note is up 11 ticks and the 30-year bond is up 23 ticks. Meanwhile, the three month T-bill yield has spiked 36 basis points to 1.56%.DJ30 +234.16 NASDAQ +24.86 SP500 +25.51 NASDAQ Adv/Vol/Dec 1823/1.50 bln/918 NYSE Adv/Vol/Dec 2434/789 mln/692
2:30 pm : The stock market climbs to a session high of 3.3% and then gives back about 0.7 percentage points.
All ten sectors remain in positive territory. Energy (+6.6%) is up the most, while financials (+0.6%) are posting the smallest gain.DJ30 +201.27 NASDAQ +23.65 SP500 +24.15 NASDAQ Adv/Vol/Dec 1836/1.37 bln/880 NYSE Adv/Vol/Dec 2416/721 mln/706
Yahoo! (YHOO 12.49, -0.41) is underperforming with a 3% decline. The Wall Street Journal reported earlier that its sources said the company plans to announce cost cutting measures when it reports earnings on Tuesday. The cuts will include at least 1,000 layoffs, according to the report.
Struggling electronics retailer Circuit City (CC 0.39) is considering closing at least 150 stores as an alternative to filling Chapter 11 bankruptcy protection, The Wall Street Journal reported this morning, citing people familiar with the company. The recent plunge in Circuit City's stock and the high cost to protect Circuity City debt indicates that the market is forecasting a large chance Circuity City will go bankrupt.DJ30 +199.48 NASDAQ +21.45 SP500 +23.20 NASDAQ Adv/Vol/Dec 1785/1.27 bln/908 NYSE Adv/Vol/Dec 2402/665 mln/709
1:30 pm : The S&P 500 is trading at its best level of the afternoon, and is modestly below session highs.
The dollar is enjoying buying interest as traders worry about overseas economies. The Dollar Index is up 1.0%, hitting its highest level since June 2007.
Meanwhile, crude oil prices bounce to session highs, now up 4.2% to $74.97 per barrel. Commodities as a whole are down 0.2%.DJ30 +197.21 NASDAQ +17.99 SP500 +23.58 NASDAQ Adv/Vol/Dec 1725/1.14 bln/966 NYSE Adv/Vol/Dec 2366/601 mln/727
1:05 pm : The stock market is on the downslope again. The S&P 500 recently climbed to a gain of 2.6% before trending lower. Still, that advance remains short of the 3.0% gain registered early on when stocks were at their best level of the session.
Within the S&P 500, energy continues to be a relative leader. The sector is up 6.0% as oil extends its gain from late last week. Crude futures are currently up 2.7% to $73.80 per barrel.DJ30 +145.04 NASDAQ +8.20 SP500 +17.52 NASDAQ Adv/Vol/Dec 1639/1.06 bln/1021 NYSE Adv/Vol/Dec 2268/559 mln/817
12:25 pm : The S&P 500 and Dow approach early morning session highs, when they were up 3.0% and 2.8%, respectively.
The White House said it is open to a second stimulus package, depending on the details proposed by Congress, Reuters reports.DJ30 +182.15 NASDAQ +17.94 SP500 +21.82 NASDAQ Adv/Vol/Dec 1751/937 mln/882 NYSE Adv/Vol/Dec 2357/500 mln/707
12:00 pm : The stock market posts a solid gain at midday, though off the session's best levels, as investors digest the continuation of modest improvements in the credit market and Fed Chairman Bernanke indicating his support of a second fiscal stimulus.
During testimony to the House Budget Committee, Fed Chairman Bernanke said he feels the recent efforts by the government will help restore the financial system, but noted the stabilization of the financial system will not quickly eliminate economic challenges.
Bernanke said consideration of a fiscal stimulus package by Congress is appropriate given the likelihood of a weak economy for several quarters. He feels that a fiscal package should be targeted to boost overall spending and economic activity, aimed at improving credit for consumers, home buyers, business and other buyers and limit long-term effects on the government's budget deficit.
Meanwhile, overseas governments have taken more actions to help alleviate the financial market turmoil. India cut its key lending rate for the first time since 2004, South Korea said it will guarantee some of the foreign debt held by its banks, and the Netherlands is injecting approximately $13 billion in ING (ING 12.85, +2.20).
Credit markets have seen some improvements. Short-term interbank lending in dollars, measured by Libor, declined across all terms. The difference between what banks pay for three-month loans and what the government pays, known as the TED Spread, declined 53 basis points to 3.09%. Despite these improvements, levels remain historically high.
All ten of the ten economic sectors are posting a gain. The energy sector (+5.7%) is outperforming. It is benefiting from a 1.5% rise in crude oil prices and better-than-expected earnings from oil field services provider, Halliburton (HAL 19.85, +1.59).
The tech sector (+0.3%) is underperforming on a relative basis, with notable weakness in several large-cap names.
In economic news, September leading indicators rose 0.3%, although August's decline of 0.5% was widened to 0.9%. Economists expected a decline of 0.1%. The leading indicators report is mostly a collection of previously announced economic indicators. DJ30 +153.12 NASDAQ +18.85 SP500 +13.80 NASDAQ Adv/Vol/Dec 1693/826 mln/913 NYSE Adv/Vol/Dec 2278/444 mln/757
11:30 am : Stocks fall to session lows, and then recover some ground as the S&P 500 trades with a gain of about 1.5%. The Nasdaq briefly trades in negative territory and then recovers to a slight gain near the unchanged mark.
Treasury Secretary Paulson has just started a conference to lay out more details of the government's capital purchase program. In his prepared text, Paulson said all eligible banks are encouraged to apply by the Nov. 14 deadline. The equity stakes that the government purchases will be Tier 1 capital for the banks.
Fed Chairman Bernanke's testimony before the House Budget Committee has concluded.
Oil prices give up gains. Crude prices are up 0.4% to $72.12 per barrel after being up as much as 3.7%.DJ30 +108.32 NASDAQ +2.88 SP500 +14.05 NASDAQ Adv/Vol/Dec 1596/713 mln/964 NYSE Adv/Vol/Dec 2118/391 mln/897
11:00 am : The major indices are giving up some gains. The Nasdaq (unch) is underperforming, largely due to weakness in large-cap tech (-0.5%).
Research In Motion (RIMM 53.11, -5.90), Qualcomm (QCOM 37.76, -1.99), Apple (AAPL 95.17, -2.23) and Microsoft (MSFT 23.39, -0.54) are all under selling pressure.
In earnings news, Eaton (ETN 45.92, +1.50), Halliburton (HAL 19.56, +1.30), and Hasbro (HAS 27.43, -2.69) topped estimates for their respective latest quarters. On the negative side, Novartis AG (NVS 51.11, +0.17) and Mattel (MAT 13.75, -0.70) reported earnings that fell short of expectations.
In other corporate news, utility company Exelon (EXC 52.07, -2.43) made an unsolicited proposal to acquire NRG Energy (NRG 23.59, -4.27) for $26.43 per share, or $6.2 billion, in stock. The offer represents a 37% premium.
Fed Chairman Bernanke continues to answer House Budget Committee questions.DJ30 +111.82 NASDAQ +0.46 SP500 +11.17
10:30 am : The stock market dips from its best levels, but is still holding on to a solid gain of nearly 2%.
Fed Chairman Bernanke has finished his prepared remarks, and is currently participating in a question and answer session before the House Budget Committee.
Although Bernanke feels the recent efforts by the government will help restore the financial system, he noted the stabilization of the financial system will not quickly eliminate the economic challenges. However, he said the economic recovery will depend greatly on the pace at which financial and credit markets return to more-normal functioning.
Bernanke said consideration of a fiscal stimulus package by Congress is appropriate given the likelihood of a weak economy for several quarters. He feels that a fiscal package should be targeted to boost overall spending and economic activity, aimed at improving credit for consumers, home buyers, business and other buyers and limit long term effects on the government's budget deficit.DJ30 +135.56 NASDAQ +11.55 SP500 +16.95 NASDAQ Adv/Vol/Dec 1777/407 mln/649 NYSE Adv/Vol/Dec 2351/236 mln/569
10:05 am : Fed Chairman Bernanke's prepared testimony for the House Budget Committee was just released. Bernanke said the consideration of a new fiscal stimulus would be appropriate, noting that credit has become costlier.
Just hitting the wires, September leading indicators rose 0.3%, but only after August's decline of 0.5% was widened to 0.9%. Economists expected a decline of 0.1%. The leading indicators report is mostly a collection of previously announced economic indicators.
All ten of the economic sectors are in the green as the stock market extends its opening gains. The energy sector (+7.0%) is up the most, followed by materials (+5.0%). Crude oil prices are up 3.0% to $73.98 per barrel and gold prices are up 0.8% to $791.30 per ounce.DJ30 +221.02 NASDAQ +30.78 SP500 +25.57 NASDAQ Adv/Vol/Dec 1738/212 mln/554 NYSE Adv/Vol/Dec 2296/143 mln/518
09:35 am : Stocks get off to a positive start as banks continue to show more willingness to lend to each other, indicated by the easing of Libor across all terms.
Overseas governments have taken more actions to help alleviate the financial market turmoil. India cut its key lending rate for the first time since 2004, South Korea said it will guarantee some of the foreign debt held by its banks, and the Netherlands is injecting approximately $13 billion in ING.
Looking ahead, Fed Chairman Bernanke is scheduled to testify before the House Budget Committee on the economic outlook and financial markets at 10:00 AM ET. Treasury Secretary Paulson will talk about the government's plan to buy bank capital at 11:30 AM ET. On the economic front, the September leading indicators report will be released at 10:00 AM ET.DJ30 +102.95 NASDAQ +22.56 SP500 +11.93
09:15 am : S&P futures vs fair value: +6.60. Nasdaq futures vs fair value: +11.30.
08:59 am : S&P futures vs fair value: +10.10. Nasdaq futures vs fair value: +17.50.
08:32 am : S&P futures vs fair value: +12.00. Nasdaq futures vs fair value: +20.00. Futures indicate a higher start to the trading day. Looking ahead, Fed Chairman Bernanke is scheduled to testify before the House Budget Committee on the economic outlook and financial markets at 10:00 AM ET. Treasury Secretary Paulson will talk about the government's plan to buy bank capital at 11:30 AM ET.
08:05 am : S&P futures vs fair value: +11.60. Nasdaq futures vs fair value: +19.30. Although off their best levels of the morning, futures indicate a higher start as credit markets continue to show signs of improvement. In corporate news, Exelon (EXC) offered to acquire NRG Energy (NRG) for $26.43 per share, or $6.2 billion, in an all-stock deal. In earnings news, Eaton (ETN), Halliburton (HAL), and Hasbro (HAS) all posted better-than-expected quarterly results. Mattel (MAT) and Novartis (NVS) reported earnings that missed Wall Street's expectations. There were additional moves to shore up the financial system by overseas countries. The Dutch government is injecting 10 billion euros in ING (ING) to improve its tier 1 ratio. South Korea said it will guarantee up to $100 billion in foreign debt held by its banks and inject another $30 billion into its banking system.
06:50 am : S&P futures vs fair value: +17.60. Nasdaq futures vs fair value: +29.80.
06:50 am : Nikkei...9005.59...+311.70...+3.60%. Hang Seng...15323.01...+768.80...+5.30%.
06:50 am : FTSE...4130.9...+67.90...+1.70%. DAX...4821.4...+39.40...+0.80%.
My posting is for my own entertainment, do your own DD before pushing your buy/call button
Market Data 
Markets 
